PlaceConf: Will Location Analytics Disrupt Ad Models?
September 18, 2017 | Contributed by: Gerard Vicente
Earlier this year, GroundTruth rolled out a new performance model called Cost Per Visit that charges marketers only when people come into their store or business location. With other companies like Blis and Retale rolling out their own pay-per-visit model, brands and marketers alike are having to fundamentally rethink how they buy media.
While there is some friction in shifting away from traditional models, such as Cost per Click or Cost per Impression, as panelists from today’s Place Conference unanimously agreed, the need is there, but education for partners is crucial.
On top of thoughtful education, meaningful conversation around pay-per-visit is also needed to give marketers confidence in this new model. There is hesitation from many brands and agencies to be the “guinea pig” and to go through a test campaign, as GroundTruth’s Kerri Smith discussed on today’s panel. Therefore, deep understanding of your partners’ key performance indicators and their willingness to be flexible on pricing should be a part of the conversation.
While certain verticals are obvious partners for pay-per-visit – retail, CPG, and restaurants come to mind – adoption also lies in other verticals such as automotive, telecommunications, and banking. Ultimately, any brand that has a brick-and-mortar location would benefit from this performance-driven metric as research shows that 90% of shopping still occurs in-store.
As location-based marketing increasingly becomes part of the marketing mix, the onus is on companies like GroundTruth, Blis, and Retale, who all spoke at today’s conference, to educate the industry on the importance of this new and emerging category. One stat shared was that 93% of human behavior is predictable, and knowing and tracking against where people visit is fundamental in unlocking the full picture of the consumer journey.
Being able to pay for a visit is just the tip of the iceberg, though. The power of location will also provide brands with real life data and insights on their consumer profile, which is important for not only understanding where their consumer has been, but where they will go next.